Company Profile

ESTABLISHED in 1990’s within the region of South Sumatra, the Company has so far built estates and plants to process the commodities of rubber and palm oil not to mention its active participations in the program of palm oil plantation development for society, which is financed by state-owned Banks. Pinago Utama also pursues business cooperation with so called independent farmers (Non-Plasma farmers) who produce and sell fresh fruit bunches (FFB) to us in order for the Company to ensure material supply adequacy for its processing mill. In brief, elements of business PT. Pinago Utama is managing are as follows: § Business Core: rubber and oil palm agribusiness.

Fungus cultivation, methane gas, brickett and the research project of liquid smoke.

The Plasma system being implemented is called KKPA (Kredit Koperasi Primer untuk Anggota) whose source of finance is from the Kredit Likuiditas Bank Indonesia (KLBI). KKPA for plantation projects is granted to farmers who join a legal organization commonly called KUD (Koperasi Unit Desa). In execution, Bank Indonesia designates an Executing Bank that will channel the credits as well as set up the terms and conditions of due implementation to all receiving KUD’s. One of the basic requirements made obligatory by the Bank is in the form of written statement from the developing Company (called avalist) as the partner of KUD’s for the credits being granted. The partnership model between Inti and Plasma can be described as follows:

Processing plant, that is to process FFB into crude palm oil (CPO) and kernel.

Production Management, which is to purchase and record the number of FFB delivered by farmers.

Credit Installment Administration, in which the Inti Company performs the deduction upon some amount of income gained by farmers from the selling of FFB as credit installment with the executing Bank.

In execution the daily operational activities, the Company is supported by task forces that are professional and competent in their fields. We are also committed to manage our operations in such a way that promotes environmental-friendly approaches like the zero burning policy during the land clearing phases, waste and effluent integrated treatment, minimization of chemicals (insecticides, pesticides, etc.), and other efforts that are supportive to creating safe and healthy environment for all. We will always keep our focus on the efforts to increasing (and further) maintaining high quality and quantity of products through efficiency and effectiveness of our overall operational systems in order to realize our commitment, target and goals that we establish. This also takes account of our endeavors to deliver value added benefits to all of our stakeholders